Istanbul, Turkey, November 11, 2021 – IFC signed an agreement today with Akbank T.A.S. that will help provide crucial financing to small enterprises in more than 20 of Turkey's least-developed provinces, an effort expected to boost economic activity and spur job creation.
IFC is providing a $50 million loan to Akbank, one of the country's largest banks and a long-standing IFC client. Akbank will use the funding to help increase the financing available to small enterprises, which often struggle to obtain the loans they need to grow.
"This investment directly targets the most underdeveloped regions in Turkey," said, Vittorio Di Bello, IFC's Regional Head of Industry for Financial Institutions in Europe and Central Asia. "We expect the financing will help address the financing needs of the small enterprises in the provinces and sustain their operations and employment levels."
Smaller businesses are the backbone of Turkey's economy, providing more than 75 percent of the country's private sectors jobs, but only getting 30 percent of lending out of the formal financial system.
This investment builds on IFC's long-standing relationship with Akbank, which dates to the early 2000s. IFC has provided multiple investment products to the bank to support its expansion into the micro-small and medium enterprises sector and green mortgages.
IFC has supported private sector development in Turkey for over 50 years, with a committed exposure of over $4.3 billion in the country as of June 2021.
For more information about IFC's COVID-19 response, please visit www.ifc.org.
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org.
Akbank is one of the leading banks in Turkey with $66 billion consolidated assets as of September 2021. Incorporated in 1948, the bank is 49% owned by Haci Omer Sabanci Holding Anonim Sirketi ("Sabanci Holding") affiliated institutions and individuals, and the remaining 51% is free-floating. Akbank continues to provide financial solutions to its customers leveraging its solid capital base, effective asset & liability management, diversified funding base, strong liquidity, best-in-class efficiency, and prudent risk management together with its subsidiaries, Akbank AG, Ak Asset Management, Ak Investment, Ak Lease and AkÖde. Its strong presence in the country and extensive network enable the group to reach all segments of the population and act as a vital pillar of the economy. www.akbankinvestorrelations.com/en/